Ann: December Quarter 2009 Activities and Cash Fl, page-7

re: Ann: December Quarter 2009 Activities and... Had a chance to have a good read through the quarterly tonight.

After two quarterlies of higher than expected cash costs and low production due to ore grades and low operating performance, the December Qtr has shown Phu Kham is well and truly back on track.

The improved recoveries have come from optimised processes implemented during the Sept Qtr.

Great to see an Operating Cash Surplus 43.4m USD for the Qtr. Surplus has been used to further reduce the Project Loan facility by 13.545m USD.

With total debt reduced to 99.918m (incl equipment lease) and cash held incresing to 88.203m our management has acheived flexability to fund growth.

PNA's options for E&D are outstanding and probably unparrelled amongst miners of similar market cap.

Revised PK mineral resource estimate is on track for completion January. Broad zones of Copper-Gold minerialisation have been confirmed up to 150m below the current pit design. North Pit remains open laterally and at depth.

I sense that progress is being made at Puthep on Copper vat leaching, and still expect completion of the feasibility H1 2010.

Site works indicate that BH's feasibily study is well on track this is certain to be our second mine with production likely H2 2011.

Would expect some initial drill results from Phonsavan Copper and Ban Phonxai later this quarter.

Overall I feel Management have had an outstanding year and are on track for their stated aim of producing 200,000mt of Copper by 2014.